Friday, March 2, 2012

short term calls for a likely pullback


From last post the SP500 and the rest of the major indexes did moved higher. The SP500 1370 level was where I was looking for whether it'll hold or not but I was expecting maybe another 1% higher to get the bears to throw in the towel. Maybe it did or did not. Well anyway I have provided a chart that shows the SP500 since the March 2009 bottom with the blue line being the 50 day moving average. I have also drawn short red lines to shown how long the SP500 went without touching its 50 DMA. The longest has usually being 2 to 3 months so currently it's at 2 months and I expect the SP500 (along with the rest of the major indexes) will return to the 'mean aversion' and head lower for the short term to touch their 50 DMAs.

1 comment:

  1. Won't be surprised if the stock market gets a brief rally for the very short term. --- JimmyC

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